MP faces loan interest claim probe

Sunday 18 January 2009 00:05 BST

An investigation has been launched by Labour into claims MP Ben Chapman was given permission by Commons authorities to claim taxpayer-funded allowances for loan interest he was no longer paying, a Downing Street spokesman said.

The Daily Telegraph said the MP sought and was given permission to reclaim the interest payments on the full value of his original mortgage despite paying off £295,000 of the loan in 2002.

He benefited by £15,000 over 10 months from the arrangement, which documents suggested was not unique to him, it said.

The Telegraph, which has obtained the detailed expense claim files of MPs, said correspondence showed Mr Chapman had told the Fees Office he was paying off the sum on his second home in south London.

That move cut his monthly interest payments, which can be claimed back in Additional Cost Allowance, from £1,900 to £400.